The U.S.'s biggest bank, the Bank of America is getting hit by giant mortgage write offs and lawsuits and has heavy exposure to the falling U.S. economy. So it is doing what many cash strapped U.S. households are doing, slashing its costs.
By September 30th, it will have fired 3,500 employees and it plans to fire at least 10,000 thousand more. After declaring banks such the Bank of America "too big to fail," the U.S. government bailed them out with billions of dollars of taxpayer money. Those banks were supposed to be back on their feet by now.
But Bank of America's shares are down 47% year to date, with the stock closing at $7.01 on Friday. This is a vote of no confidence from investors. And B of A is not the only giant "too big to fail" bank under fire, as Citibank, JPMorgan Chase and Wells Fargo are also feeling investor pressure. This is unfortunate because the U.S. needs them to hire more people, not fire them and it needs them to offer attractive rates for credit cards and other debt, not raise its prices and reduce its service to consumers.
Dick
To learn more, please see "Bank of America To Slice Jobs," The Wall Street Journal, http://online.wsj.com/article/SB10001424053111904070604576516813395283964.html
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